We recently published a list of 12 Best Cosmetics Stocks to Buy for 2025. In this article, we are going to take a look at where Nu Skin Enterprises, Inc. (NYSE:NUS) stands against other best cosmetics stocks to buy for 2025.
According to Grand View Research, the global cosmetics industry has a market size of around $295.95 billion as of 2023. It is expected to grow at a compound annual growth rate of 6.1% between 2024 and 2030. The primary driver of this growth is the rising awareness among consumers about improving their external appearance. Products such as makeup, hair care, skin care, and color cosmetics have become essential parts of everyday life, leading to their increased demand. Another factor supporting market expansion in this sector is the introduction of non-toxic, natural, and organic cosmetic products.
The online cosmetics market is reflecting similar trends. According to a report by Mordor Intelligence, the online cosmetics market had a size of $16.23 billion in 2025. It is expected to grow at a compound annual growth rate of 8.47% between 2025 and 2030, reaching $24.37 billion at the end of the forecast period.
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South Korea takes the lead for cosmetic imports, but a 25% tariff could be imposed on the country if President Trump decides to give the green signal after a 90-day pause on a majority of his new reciprocal tariffs. On April 16, CBS News reported that the US imported more than $7.5 billion in cosmetics last year, according to estimates made by the US International Trade Commission. Around $1.7 billion of these imports came from South Korea, as American retailers are seeing a significant boom in the K-beauty industry with the sale of Korean skincare, hair care, and makeup products. This trend is partly emerging due to social media influencers consistently promoting K-beauty products.
However, the imposition of Trump’s tariffs could result in a significant price hike for these products, which is why consumers are “panic-buying” their favorite Korean products, according to CBS News. These trends are also proving worrisome to the Personal Care Products Council, a trade association representing more than 600 brands such as Estée Lauder, Procter & Gamble, L’Oréal, and Neutrogena.
The association said in a statement that it is particularly “concerned about trade policies that could result in higher prices for personal care products,” adding that US consumers use “about six to 12 products each day, including sunscreen, toothpaste, shampoo, moisturizer, and fragrance.”
We sifted through stock screeners, financial media reports, and ETFs to compile a list of 40 cosmetics stocks and chose the top 12 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey’s database.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Number of Hedge Fund Holders: 29
Nu Skin Enterprises, Inc. (NYSE:NUS) is an integrated wellness and beauty company that develops and markets an elaborate range of products in around 50 markets worldwide. It has three brands: Nu Skin, Pharmanex, and ageLOC. Nu Skin is a beauty brand, while Pharmanex and ageLOC are wellness and anti-aging brands, respectively.
The company reported better-than-expected fiscal Q4 2024 earnings, with revenue reaching $445.6 million and adjusted EPS of $0.38. Despite foreign currency headwinds, Nu Skin Enterprises, Inc. (NYSE:NUS) expects strong 2025 earnings and revenue guidance.
On January 3, the company announced the completion of a strategic transaction between its Rhyz Inc. subsidiary and Later, a portfolio company of Summit Partners. Rhyz Inc. sold Mavely, its affiliate marketing technology platform, to Later for approximately $250 million cash and a minority equity stake in the combined Later/Mavely business.
This strategic transaction gave the company around five times the return on its cumulative investments in Mavely since its acquisition in 2021. The proceeds from this transaction are expected to help Nu Skin Enterprises, Inc. (NYSE:NUS) fund innovation in its offerings and pay down debt. The company also plans to use its strengthened balance for share buybacks under its existing stock repurchase program, providing value to its shareholders.
Overall, NUS ranks 10th on our list of the best cosmetics stocks to buy for 2025. While we acknowledge the potential for NUS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than NUS but trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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